Preferred senior and junior stocks are going to be safe and should do quite well.
As the stock leaves government control
and goes back in the hands of investor's.
Commons will be wiped out Fannie and Freddie will go into receivership and do a stock offering.
Strange there's not a mad rush for the junior PS .
Some say if the commons are wiped out the preferred juniors will be wiped out.
They are so wrong.
Preferred is Preferred be it senior or junior.
Commons are commons.
All preferred shares will have to be dealt with.
Big news going to hit the wire on
Tuesday Labour Day 2019.
All Fannie and Freddie stock is going to be in investors hands. Prefer stocks will
Probably be converted in to commons.
With a float of just 3 million shares.
And such a safety net being a preferred stock I just had to jump in today.
My average buying price was 19.65
Well not at the top, but looking back, I was lucky:
Date Open High Low Close Volume Adj. Close
2013/05/29 20.00 28.10 11.59 15.10 66,924 15.10
Sounds like a prudent maneuver. I hope that you will have good health to see the heaven part and the time to enjoy the fruits of your your labors.
Looks like you sold at the top.
I want to welcome you back.
I hope you are "wide eyed and bushy tailed" for this drama.
Have a great 4th and get back to us soon.
Not possible for me to do this week, other issues taking up my time.
Well...sidedraft, did Fidelity let you purchase?
In April, I tried to buy more pfd thru Fidelity. Every day for three weeks I entered my buy orders only to be rebuffed by a notice to call in. When I would call, the line was always "not available for you to purchase" with some lame excuse about "protecting me". Yeh, sure, like they "protected" me from C, LEH, WAMU and AIG when they were falling like a rock.
The PFDs were racing from $3.50 to $5.50 and I was locked out. Finally, one rep sent me to FIXED INCOME DESK, and, voila, they were very happy to take my orders. So that's the ticket. Good luck.
My shares went long today, so I was going to sell all and buy different ones with more bank for the buck. I tried to buy at Fidelity and the two that I tried to buy were not available for online buys, sell were OK online. Have online buying restrictions been in force for a long time?
Fannies PFD FNMFM
Freddy PFD FMCKJ
Just for comparison, which tickers are you talking about?
Whereas these are perpetual, the Freddie PFD were recently reclassified as callable and the rate of payout was indexed to a formula using LIBOR 3 mos. rate plus 6.4% or 7.875% whichever is higher.
Hi sidedraft (from another HUB world).
This is my understanding of the $50 5.10% Fanny Mae preferred. The reason these have a higher value is, of course their $50.00 PFD liquidation value.If and when dividends are reinstated, a great possibility given the earning power, the dividend payout will be $2.55 per annum. At $15.00 PPS this will equal to 19.6% return.
Whereas these are perpetual, the Freddie PFD were recently reclassified as callable and the rate of payout was indexed to a formula using LIBOR 3 mos. rate plus 4.61% or 7.875% whichever is higher. Once you start playing with terms of corporate issued securities, the company enters a slippery slope of possibly extinguishing its value. The Freddies $25 callable 7.875% priced at ~$6.50 will yield 31% at current price were they to recommence PFD Dividends.
Please note that neither security is cumulative.
Nice to see familiar faces.
volume is low but also not so volatile
no volume here, this could be like 10 people bidding this up. There's virtually no interest
Right now, at $10.60 this stock is the only $50 Fannie Mae preferred over $9.00.
I think I am in the right place.
Is there something special about this $50 preferred? ASK = $9.00
Weird, this one is almost always above any other $50 Fannie Mae preferred.
Today's HOD was $9.85.
I don't see the reason for FM being higher than FN. There is something about the FM that keeps it from having MM lite up, but what?
Why would the price on this be so high and FNMFN is so much lower?
EDIT: Maybe because of this article,
"Going back to our preferred stock examples, it's obvious that new investors can make quick gains if the shares go up, but what about the income? If the dividend were resumed on Fannie Mae's preferred series E shares, investors would receive annual income of $2.55 a share. That would be a pretty fat yield 36.48% for investors who went in Wednesday at $6.99 a share."
Up to $7.00, still lots to go.
On September 7, 2008, the Federal Housing Finance Agency, as Conservator of Fannie Mae, announced that Fannie Mae would not pay any dividends on common stock or on any series of outstanding preferred stock (other than the Variable Liquidation Preference Senior Preferred Stock, Series 2008-2).
Additionally, the Senior Preferred Stock Purchase Agreement prohibits the payment of dividends on all common and preferred stock (other than the senior preferred stock) without the prior consent of the United States Department of the Treasury.
For reference purposes only, the dividend rates on Fannie Mae’s outstanding preferred stock for the first quarter of 2013 are as follows:
Looks like no one wants to part with any shares, even for $1.01.
Barometer on the rise:
FNMFO $4,750.00, up from $3,850.00 on the 13th.